The Indian textile and retail sector has welcomed the Goods and Services Tax (GST) rationalisation announced at the GST Council’s 56^th meeting, highlighting relief from the inverted duty structure and a fibre-neutral approach. However, stakeholders flagged concerns over garments and footwear priced above ₹2,500 being placed in the 18 per cent slab.

Sanjay K Jain, chairman of ICC’s National Textiles Committee, highlighted the broader implications: “The long-standing demand for removal of the inverted duty structure in MMF yarn and fabric has been met—bringing the entire chain under 5 per cent GST, in line with cotton. However, garments priced above ₹2,500 will become around 6 per cent costlier. The use of manmade textiles is expected to rise as a result.”

India’s textile and retail sector has welcomed the GST rationalisation, with industry bodies lauding removal of inverted duty and alignment of MMF with cotton at 5 per cent.
CMAI, RAI and NITMA hailed the move as transformative, though concerns remain over garments and footwear above ₹2,500 being placed in the 18 per cent slab.
Stakeholders urged the Council to adopt a uniform 5 per cent rate.

The Clothing Manufacturers Association of India (CMAI) said the changes address two major demands—removal of inverted duty and equalisation of cotton and MMF chains at 5 per cent. “The increase of the 5 per cent limit from ₹1,000 to ₹2,500 is also an extremely positive move,” CMAI said, while urging the Council to reconsider taxing garments above this level at 18 per cent. “Garments above the price of ₹2,500 are also consumed in large numbers by the common man and middle class, especially woollen clothing, occasion wear, Indian traditional clothing and handlooms,” it added.

Suditi Industries Ltd, owner of kidswear brand Gini & Jony, said the revisions provide dual growth drivers—stronger consumption and improved margins. Commenting on the company’s expansion, Harsh Agarwal, CEO of Gini & Jony, said: “This is a pivotal time for Suditi. With the integration of Gini & Jony, we are no longer just a textile manufacturer—we are transforming into a consumer-facing retail powerhouse. The upcoming GST reforms and strengthening domestic consumption create a strong runway for growth.”

The Retailers Association of India (RAI) termed the move to a two-slab framework “a vital step towards simpler and fairer taxation” but warned against flaws in price-based thresholds. RAI said: “Such slabs create distortions, promote grey market activity, harm organised retail and discourage domestic manufacturing. All garments and footwear should ideally be taxed at 5 per cent, or at the very least, a more reasonable price threshold should be established.”

For the Northern India Textile Mills Association (NITMA), the decision marks a “transformative milestone” for India’s MMF sector. NITMA president, Sidharth Khanna, said: “We are pleased to share that the long-standing issue of the inverted duty structure in GST for MMF textiles has been successfully addressed. These changes will significantly lower costs across the MMF and technical textiles value chain, enhancing efficiency and export competitiveness.”

Raghunath Mannil Balakrishnan, chief executive officer at Mafatlal Industries Limited, opined, “The 56th GST Council reforms bring both opportunities and challenges for the textile and apparel sector. While the increase of GST on coal from 5 per cent to 18 per cent will push up fabric processing costs, the reduction of GST on yarn from 12 per cent to 5 per cent should partially balance this out. As a result, fabric prices overall may not see a significant change. What is particularly encouraging is the reduction of GST on garments priced below ₹2,500 from 12 per cent to 5 per cent. This is a consumer-friendly move that will make mid-market apparel more affordable, stimulate demand, and strengthen growth in this critical segment. For an industry that is both price-sensitive and volume-driven, such measures can provide the much-needed impetus for growth. At Mafatlal, we see this as a positive step that can support industry volumes while ensuring affordability for a wider base of consumers.”

The Southern India Mills’ Association (SIMA) also hailed the GST rationalisation as a long-pending demand fulfilled, calling it a breakthrough for the MMF textile value chain. Dr. S K Sundararaman, chairman, SIMA, said: “This bold and historic reform slots the entire MMF chain at 5 per cent, addressing raw material structural issues that had made the poor man’s clothing more expensive.”

He noted that global MMF accounts for 70 per cent of fibre consumption but only 30 per cent in India, largely due to earlier tax distortions. He added: “The government has set a vision to grow textiles from $172 billion to $350 billion and exports from $37 billion to $100 billion. Polyester will be the main growth engine to achieve this vision.”

Dr. Sundararaman also appreciated the establishment of fibre neutrality and the introduction of 90 per cent provisional refunds for raw material duties, saying these measures would “boost domestic consumption by 7–10 per cent in the near term and help India withstand abnormal tariffs imposed by the US.”

The Indian textile industry has collectively thanked the government for addressing long-standing demands, while pressing for further rationalisation to ensure all garments and footwear are taxed at a uniform rate.

Fibre2Fashion News Desk (KD)

American Eagle Outfitters, Inc. (NYSE: AEO) announced the American Eagle brand’s launch of AE x Tru Kolors by Travis Kelce, a limited-edition product collaboration with Tru Kolors—Kelce’s sportswear and lifestyle brand built on connection and self-expression. More than a year in the making, AE x Tru Kolors by Travis Kelce merges fashion, sports and culture—pairing the #1 jeans brand for Gen Z with one of the most recognizable faces in football and entertainment.

“I’ve had to keep my excitement about this collab under wraps for nearly a year. It was an awesome opportunity to team up with an established brand where both sides were excited to truly collaborate on every decision in the design and creative process that brought the ‘AE x TK’ collection to life,” said Travis Kelce. “I started Tru Kolors in 2019 on the foundation of showing up authentically and having fun with style, and we wanted this collab to reflect that same energy. I want everyone to feel like there is something for them in the collection, something they can feel good in and make their own. I’m excited for it to finally be out in the world.”

American Eagle launched AE x Tru Kolors, a limited-edition collaboration with Travis Kelce’s lifestyle brand.
As Creative Director, Kelce guided every detail, from design to fabrics, reflecting his “live to play” philosophy.
The campaign features athletes including Anna Frey, Azzi Fudd and Suni Lee.
The collection blends fashion, sports and culture, embodying confidence, authenticity and self-expression.

As Creative Director, Kelce and his team were involved in every step of the process alongside the AE team. Reflecting the way he lives–full of intention and true to his core philosophy of “live to play,” Kelce took a hands-on approach from design inspiration to fabric, color palette, sample selection, silhouette refinement and graphic creation. Every detail and product in this collection underscores AE and Kelce’s shared passion for creating pieces that exude confidence while feeling personal, purposeful and versatile.

“American Eagle and Travis Kelce were destined to collaborate. An iconic brand teaming up with one of the greatest athletes of our generation – that’s what I call a win,” said Jennifer Foyle, President and Executive Creative Director – American Eagle Outfitters. “AE and Tru Kolors are rooted in optimism, self expression and confidence–and we share a passion for empowering everyone to feel like their true self when wearing our products. Travis’ infectious energy and dedication to every aspect of the collaboration brought a refreshing spirit to the team, inspiring us to explore bespoke fabrics and fits to showcase this collection through his distinct style and perspective.”

Admired for inspiring others through their ability to dream and live life to play, Kelce tapped friends and fellow athletes, including rising tennis star Anna Frey, elite basketball guard Azzi Fudd, quarterback Drew Allar, the nation’s No. 1 wide receiver recruit Jeremiah Smith, top basketball prospect Kiyan Anthony, and gold medalist and world-class gymnast Suni Lee, to star in the campaign. They each bring their true selves to everything they do and embody the “live to play” mindset.

Collection Highlights

Launching in two drops on August 27 and September 24, the collection features more than 90 pieces priced between $14.95 and $179.95. Products evoke Travis’ unique style, delivering an elevated take on everyday essentials and transforming classic silhouettes into bold statements of confidence and individuality. Favorites include:

• Heavyweight, vintage-inspired tees
• Reimagined varsity jackets, cricket sweaters, rugby polos and utility cargos
• Soft chenille pieces and cashmere sets
• Bespoke Graphics reflective of the world of AE x Tru Kolors by Travis Kelce

The AE x Tru Kolors by Travis Kelce campaign will debut to consumers across the globe through an impressive rollout of high impact placements across all social platforms, OOH including the Chiefs hometown of Kansas City, a partnership with top NFL news podcast, The Ringer, extensive cTV ads featuring the campaign and takeovers within fantasy sports content.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (RM)

Donald Trump‘s administration asked the U.S. Supreme Court on Wednesday to hear a bid to preserve his sweeping tariffs pursued under a 1977 law meant for emergencies, after a lower court invalidated most of the levies central to the Republican president’s economic and trade agenda.

The Justice Department appealed an August 29 ruling by a federal appeals court that the president overstepped his authority in invoking the law known as the International Emergency Economic Powers Act, undercutting a major Trump priority in his second term.

The tariffs currently remain in effect as the appeals court paused its order to give the administration time to seek Supreme Court review.

The Justice Department asked the Supreme Court to decide by Sept. 10 whether it would hear the case. The Justice Department also proposed an accelerated timetable for resolving the litigation, with oral arguments in the first week of November, just a month after the start of the court’s 2025-2026 term.

Lawyers for small businesses challenging the tariffs are not opposing the government’s request for a Supreme Court hearing. One of the attorneys, Jeffrey Schwab of Liberty Justice Center, said in a statement they were confident they would prevail.

“We hope for a prompt resolution of this case for our clients,” Schwab said.

The levies are part of a trade war instigated by Trump since he returned to the presidency in January that has alienated trading partners, increased volatility in financial markets and fueled global economic uncertainty.

Trump has made tariffs a pillar of U.S. foreign policy, using them to exert political pressure and renegotiate trade deals and extract concessions from countries that export goods to the United States.

The litigation concerns Trump’s use of IEEPA to impose what Trump calls “reciprocal” tariffs to address trade deficits in April, as well as separate tariffs announced in February as economic leverage on China, Canada and Mexico to curb the trafficking of fentanyl and illicit drugs into the U.S. 

IEEPA gives the president power to deal with “an unusual and extraordinary threat” amid a national emergency and had historically been used for imposing sanctions on enemies or freezing their assets. Prior to Trump, the law had never been used to impose tariffs. 

Trump’s Department of Justice has argued that the law allows tariffs under emergency provisions that authorize a president to “regulate” imports or block them completely.

The appeals court ruling stems from two challenges, one brought by five small businesses that import goods, including a New York wine and spirits importer and a Pennsylvania-based sport fishing retailer.

The other was filed by 12 U.S. states – Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, Oregon and Vermont – most of them governed by Democrats. 

The Constitution grants Congress, not the president, the authority to issue taxes and tariffs, and any delegation of that authority must be both explicit and limited, according to the lawsuits.

The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., agreed, ruling that the president’s power to regulate imports under the law does not include the power to impose tariffs.

“It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the President unlimited authority to impose tariffs,” the appeals court said in its 7-4 decision. 

The appeals court also said that the administration’s expansive view of IEEPA violates the Supreme Court’s “major questions” doctrine, which requires executive branch actions of vast economic and political significance to be clearly authorized by Congress.

The New York-based U.S. Court of International Trade, which has jurisdiction over customs and trade disputes, previously ruled against Trump’s tariff policies on May 28. 

Another court in Washington ruled that IEEPA does not authorize Trump’s tariffs, and the government has appealed that decision as well. At least eight lawsuits have challenged Trump’s tariff policies, including one filed by the state of California.

The administration’s appeal comes as a legal fight over the independence of the Federal Reserve also seems bound for the Supreme Court, setting up a potential legal showdown over Trump’s entire economic policy in the months ahead.